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Glencore enters aluminum scrap recycling JV

  • : Metals
  • 23/02/22

Commodities trading firm Glencore and scrap brokerage Zeb Metals are partnering to install an aluminum scrap and dross recycling operation in the Charleston, South Carolina, area.

The plant will target a late 2023 opening date and will include as many as two rotary furnaces to recycle aluminum dross and industrial scrap for regional consumption, according to people familiar with the matter.

Century Aluminum operates a primary smelter in Goose Creek, South Carolina, close to JW Aluminum's Mt Holly rolling mill. Both facilities are less than 20 miles from Charleston and produce dross, which is an aluminum-containing byproduct of both primary and secondary smelting.

While Glencore already has exposure to copper scrap and precious metal scrap recycling at facilities in the US, Canada, Italy and Chile, the plant will mark the company's first foray into aluminum scrap recycling at a time when industry investment is at its highest in decades.

"Recent government policies, such as the US Inflation Reduction Act (IRA) and the EU's proposed Green Deal Industrial Plan, demonstrate the growing need for critical raw materials through to the end of the decade and beyond, necessitating fresh investment in both primary supply and recycling," Glencore said earlier this month in its 2022 full year earnings, expecting to benefit from the growing trend toward decarbonization.

In May 2022, Novelis announced it would build the first US greenfield rolling mill in decades, which was followed by similar US mill announcements from Steel Dynamics and Ball.


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24/10/04

US tops expectations with 254,000 jobs in Sep

US tops expectations with 254,000 jobs in Sep

Houston, 4 October (Argus) — The US added more jobs than expected in September and the unemployment rate ticked down, signs the labor market is strengthening heading into the US presidential election. US nonfarm payrolls rose by 254,000 workers last month, and the jobless rate fell to 4.1pc, the Labor Department reported Friday. Gains in August were revised up by 17,000 to 159,000 and those in July were revised up by 55,000 to 144,000. September's job gains were much higher than the 140,000 estimated by economists in a Trading Economics survey. Job gains blew past expectations in the same month the Federal Reserve began cutting interest rates for the first time since 2020, citing concerns that a weakening labor market might pull down the overall economy. Odds of a quarter point rate cut at the next Fed meeting in November rose to 91pc today from about 68pc Thursday, according to fed funds futures markets, while odds of a half-point cut fell to 9pc. The Fed last month penciled in 50 basis points of cuts in the remainder of this year. Job gains were higher than the average monthly gains of 203,000 over the prior 12 months, the Labor Department reported. Employment continued to move higher in food services and drinking establishments, health care, government, social assistance and construction. The labor market was little affected by Hurricane Francine, which made landfall in Louisiana on 11 September, during the reference periods for the surveys that contribute to the report. Gains in restaurants and drinking places rose by 69,000 jobs, much higher than the average 14,000 added over the prior 12 months. Health care added 45,000 jobs, below the monthly average of 57,000. Government added 31,000 compared with monthly averages of 45,000. Social assistance added 27,000. Construction added 25,000, near the monthly average. Manufacturing lost 7,000 jobs, most of them in the auto industry. The unemployment rate fell from 4.2pc in August, still higher than the five-decade low of 3.4pc posted in early 2023. Average hourly earnings rose by 4pc in the 12 months through September, up from 3.8pc through August. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Europe to keep using NPI until CBAM: Anglo American


24/10/04
24/10/04

Europe to keep using NPI until CBAM: Anglo American

London, 4 October (Argus) — Europe's stainless steel producers will continue to import and use nickel pig iron (NPI) until the EU's carbon border adjustment mechanism (CBAM) enters its definitive period in 2026, according to John Eastwood, major nickel mining group Anglo American's head of sales, stainless and specialty steel raw materials. A region-wide scarcity of stainless steel scrap and rising raw material costs drove European mills to pivot to using the cheaper and more carbon-intensive Indonesian NPI this year, with imports equating to 10,000t of nickel metal content in January-July, according to Red Door Research managing director Jim Lennon. A European trading firm told Argus this week that Spanish producer Acerinox, ramping up production after a five-month strike-related outage this year, has also committed to using NPI as input feedstock. Speaking on the sidelines of the Nickel Institute Seminar during LME Week on 2 October, Eastwood said this trend will not die down in the near term despite recent falls in scrap prices, with only CBAM — the EU's tax measure to limit carbon leakage within the region and support its long-term climate goals — being a likely deterrent. Currently in its trial phase before full planned implementation in 2026, CBAM requires European importers to offset the CO2 emissions linked with the production of the goods purchased overseas by buying emissions certificates. Scrap suppliers in Europe are waiting as they realise they cannot compete with NPI, with the downside to prices likely to be limited as a result, Eastwood said. The Argus assessment for stainless steel scrap 304 (18-8) solids cif Rotterdam has fallen by nearly 20pc since 22 August and was last at an average €1,175/t. The European stainless steel industry is facing a severe downturn with real demand set to shrink for a third straight year in 2025. Flat producers in particular are operating at well below capacity amid low downstream service centre demand, and Eastwood foresees no change to fundamentals until the second half of 2025. "The problem is not profitability, the problem is there is excess capacity," Eastwood said. "We had Acerinox out of the market for months this year, but it made little difference to the market and prices. Despite a shortage of scrap, there was no impact on our ferro-nickel sales, which tells you how weak the market is." Eastwood believes the second half of 2025 is when demand might recover as the effect of improving macros and easing monetary policy will start to kick in. CBAM has come under intense criticism from European stainless steel producers given that it does not include scope 3 emissions while imposing taxes on selected upstream raw materials, with many producers simply viewing it as a protectionist measure that is fast-tracking de-industrialisation. Eastwood echoed this sentiment and stressed on reform, but said the industry had now accepted that it was here to stay. "There are many holes [in CBAM]. It includes ferro-nickel but leaves out refined nickel, for example," he said. "It is not uniform for the whole supply chain. Average CBAM costs are about $1,000/t of nickel. It is not clear who will pay this." Anglo American's projections peg the class 1 nickel market as the sole provider of market surpluses in the coming years, with the Asian class 2 market, including NPI and ferro-nickel, balanced and even tight, Eastwood said. Nickel prices on the LME are expected to move similarly in 2025 relative to this year. "The wider surplus story is here to stay," Eastwood said. "The story about nickel rocketing up is over. We do not expect much change." Eastwood noted freight costs as a significant limiting factor for the stainless steel industry next year, curbing imports of finished stainless steel into Europe. "Freight prices have been astronomical, and we expect it to remain the same next year," he said. "These costs will weigh heavily on trading, whether imports or otherwise." By Raghav Jain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Dockworkers end US port strike


24/10/03
24/10/03

Dockworkers end US port strike

Houston, 3 October (Argus) — US dockworkers have ended a port strike that had shut container terminals from Maine to Texas, after their union late Thursday struck a tentative agreement on wages. The International Longshoremen's Association (ILA) has agreed to extend its contract with the United States Maritime Alliance (USMX) until 15 January to provide time for negotiating the remaining outstanding issues, the ILA said in a statement. The USMX includes containership owners, terminal operators and port associations. "Effective immediately, all current job actions will cease and all work covered by the master contract will resume," the ILA said. The strike, which started on 1 October, had forced containership operators to queue up outside US east coast ports. Major container shipping agencies such as Maersk had initiated surcharges for US east coast and Gulf coast-bound containers later in October. By Jack Kaskey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US light vehicle sales surged in September


24/10/03
24/10/03

US light vehicle sales surged in September

Houston, 3 October (Argus) — Domestic sales of light vehicles rebounded in September, increasing to a seasonally adjusted rate of 15.8mn on the strength of greater truck purchases. Sales of light vehicles — trucks and cars — rose from a seasonally adjusted annual of rate 15.3mn in August, the Bureau of Economic Analysis reported today. Sales have whipsawed the previous four months, but September's rate largely was in line with the 15.7mn unit rate in September 2023. The US Federal Reserve last month cut its target rate for the first time since 2020, bringing it down by 50 basis points from its 23-year highs as inflation has been easing. Lower inflation and Fed easing, which ripples across credit markets, make it more affordable for people to purchase new vehicles. Fed policymakers have penciled in another 150 basis points worth of cuts through 2025, as they hope to head off any weakening in the labor market that could scuttle the wider economy. Higher overall sentiment about the US economy, fueled by a robust 3pc growth in gross domestic product (GDP) in the second quarter, healthy labor conditions and consumer spending also have encouraged consumers to spend. Sequentially, light truck sales increased by 3.1pc to a 12.8mn unit rate in September, while sales of cars rose by 4.4pc to a 3mn unit rate in the same time period. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Israel-Iran conflict threatens Mena steel supply


24/10/03
24/10/03

Israel-Iran conflict threatens Mena steel supply

London, 3 October (Argus) — The escalating Israel-Iran conflict could lead to a shortage of steel and steelmaking raw materials in the Mena region because of potential logistical disruptions and a surge in freight prices. Tensions have risen after the killing of the leader of Iran-backed Hezbollah militia Hassan Nasrallah , by Israel on 27 September, which sparked retaliation from Iran. This has seen an increase in attacks on vessels in the Red Sea by Yemen's Iran-backed Houthis, disrupting trade routes. The conflict could adversely affect construction and steel demand in the Mena region, which remains a key export outlet for long steel products, as well as billets. "The attacks are highly likely to increase and imports from Asia to Turkey will be negatively impacted due to high freight and therefore, high steel prices," said a Turkish integrated producer whose steel cargo was targeted by Houthi missiles a few months ago. An international iron ore trader echoed this, expecting freight prices to increase. Over the past few years, Israel and Yemen were important rebar export destinations for Turkey. But in April , Turkey imposed a trade ban on Israel. Turkish rebar exports to Yemen have sharply dropped owing to risks to shipments. Currently steel trading activity with Lebanon is on hold . Lebanon typically purchases high volumes of long steel, particularly rebar, from Egypt, Algeria and Libya. Market participants in the UAE, a major producer and consumer in the Gulf Co-operation Council (GCC), had previously anticipated a strong final quarter of the year, because of expected increases in construction activity from large-scale projects. But should the situation escalates, projects could be on hold and demand will shrink, a producer warned. Trading in Oman faces greater risk compared with other GCC countries because of its shared border with Yemen. The conflict could also negatively impact the flat steel industry in north Africa, as many re-rollers import hot-rolled coils (HRC) for re-rolling or coating, often finding it more feasible to use supply from Asia rather than local material. "HRC imports to Algeria will be endangered and this will increase prices of cold-rolled coils (CRC) and galvanised steel prices," a market participant commented. By Elif Eyuboglu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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